Ann: 2022 AGM Chair and CEO Addresses, page-7

Sales results are trending in the right direction. But they have a good 10+ stores open now that they didn't back in 2020...so costs will no doubt be up significantly. Hopefully they have a repeat of 2021 (slow start but did really well over Christmas). I think it's possible, the range is now more than ever geared towards gifting and each year they seem to come up with sharper and sharper Christmas décor. Time will tell - but positioned to capitalise if consumer sentiment stays good.

My take outs are that originally they needed a higher catchment to make a stores' economics work, but with a greater focus on (higher margin) oils/diffusers and seasonal gifting - they can make it work from smaller catchments. No doubt helps that rent will be lower.

No comment from them, but I'll be interested to hear their thoughts around moving the membership cost to $20. in this environment, $10 seems very low. Re NZ - seems ok, but early days yet and no comment re margins (given the pricing doesn't seem to reflect full AUD/NZD difference + GST rate differentials.